The view of Euracoal – the European coal producers ... · Securing coal’s position in the...

Prof. Dr. Franz-Josef WodopiaExecutive Member of the Managing Board

GVSt (German Hard Coal Mining Association), and Member of

Euracoal’s Executive Committee

“The view of Euracoal – the European coal producers’ organisation”

Energy, Climate Change and Clean Coal Conference –University of Sheffield,24th April 2007

Sheffield, 27th April 2007, Figure 2

EURACOAL’s Targets and Tasks

The voice of coal in Europe

– Coal – Lignite – Imported Coal

Securing coal’s position in the European energy mix

Cooperating in achieving equilibrium between

– energy policy requirements,

– market challenges and

– environmental policy initiatives (coal mining and coal utilisation)


EURACOAL MembersZPWGK - Polish Hard CoalEmployer´s Association (POL)

DEBRIV - Deutscher Braunkohlen-Industrie-Verein (GER)

GVSt - Gesamtverband des deutschen Steinkohlenbergbaus (GER)

COALPRO - Confederation of the UK Coal Producers (UK)

CdF - Charbonnages de France (FRA)

PPC - Public Power Corporation (GR)

CARBUNION - Federation of SpanishCoal Producers (ESP)

ZSDNP - Czech Confederation of Coaland Oil Producers (CZR)

PPWB - Confederation of the PolishLignite Industry (POL)

Mini Maritza Istok AG (BUL)

MATRA - Matra Erömu Rt (HUN)

PATROMIN - Federation of the RomanianMining Industry (ROM)

VDKI - Verein der Kohlenimporteure (GER)

Hornonitrianske Bane Prievidza (SVK)

Banovici Coal Mine (BOS)

EPS - Electric Power Industry of Serbia (SER)

ISSeP - Institut Scientifique de Service Public (BEL)

University of Nottingham (UK)

IMCL - International Mining Consultants Ltd. (UK)

Coaltrans Conferences Limited (UK)

Euriscoal (BEL)

Fachverband Bergbaumaschinen im VDMA (GER)


EURACOAL: Contact Point and InterestRepresentation of Coal interests in Brussels

Nationale Spitzenverbände

Nationaler Kohleverband

Kohlenindustrie



Kohlenindustrie



Kohlenindustrie

European Institutions

Commission, Parliament, Council

EURACOAL

National Coal Associations

Coal Industry

National

Institutions

Parliament

Government


Climate change is the dominant energy theme today

A Call for Action on Climate Change


Climate change is the dominant energy theme today – also for coal

IPCC and Stern Report have given prominent impulses


Growth rate in world fuel consumption 2000–2005: It is coal that has experienced the fastest growth worldwide,

not gas, oil or renewables

0 10 20 30 40

Coal

Oil

Natural Gas

Nuclear

Hydro

Wind, otherRenewables

%

34 %

10 %

14 %

8 %

15 %

28 %

GVSt 2006


0

4

8

12

16

20

24

28

32

1980 1990 2000 2005 2010 2020 2030

Coal

Oil

Gas

Nuclear

Renewables

8.3

24.4

30.1

40%38%

40%40%

Source: DOE, 2006

Mill. GWh

19.018.2

41%38%

38%

World power generation: Coal is and will be the fuel No. 1

15.2

10.8


Reserves of coal are more evenly distributed around the globe than the reserves of oil and gas

N. America123/8/7

Africa34/15/13

MiddleEast0/100/66

Europe16/2/5

FSU117/17/53

Asia Pacific163/6/13

South & Central America9/14/6

(billion tonnes oil equivalent)coal / oil / gas

source: BP 2005

Global Energy Reserves 2004


China already dominates world demand …

0

200

400

600

800

1000

1200

1400

1600

1800

Million T

onnes C

oal Equiv

ale

nt

Chin

a

USA

EU25

Indi

a

Russia

Japa

nSo

uth A

frica

Source: IEA

World Coal Consumption 2005 (including lignite)


… and most of the world’s coal is produced ‘at home’

Seaborne coal trade has only a small proportion

0

500

1000

1500

2000

2500M

illion T

onnes

Chin

a

USA

Indi

aAus

tral

iaSo

uth A

fric

a

Russi

aIn

dones

ia

Polan

d

Seab

orne

Tra

de

Source: IEA

Top 8 Global Hard Coal Producers in 2005


Europe is the world‘s third largest consumer of coal behind China and the US


Coal is (and will be) important in EU power generation …

Power-generation structures in selected EU-25 member states

Gross power generation

0 10 20 30 40 50 60 70 80 90 100

RomaniaBulgaryFrance

BelgiumItaly

HungarySpain

UKGermany

Czech RepublicGreecePoland

EU 25

coal nuclear power gas oil others (hydro)

Share in %

TWh Share of Coal in %

154 923,179 29

59 605948

84607280 28396 3334 24

1530311855572

453857

42

Data as per: 08/2006

Source: EUROSTAT – Energy / Yearly Statistics 2004


… with indigenous coal supply making a major contribution

26%

41%

33%Ligniteproduction

Hard coalimports

Hard coalproduction

399 Mt

215 Mt

171 Mt

Source: European Commission / Euracoal

EU25 Solid Fuel Supply 2005 (adjusted for calorific value)


Coal and lignite production is widespread in Europe

Source: IEA

Hard Coal Lignite (HeatAdjusted)

UKOthersHungarySpainBulgariaRomaniaSerbiaCzechPolandGreeceGermany

2005 production


Indigenous coal has clear benefits for the economy

The use of indigenous coal deposits reduces import dependence, thereby increasing security of energy supply and maintaining theaccess to the domestic reserves

Domestic coal production helps to maintain the prominent position of European mining and clean coal technologies

Coal creates regional prosperity and employment opportunities

– About 300.000 jobs in the European coal industry (often in regions with high rates of unemployment)

– With indigenous coal, the added value remains in the region

The additional economic prosperity enables the regions to develop their economic structure without any disruptions, but with a long-term vision


New European energy policies are emerging

Energy Green Paper of the European Commission published in March 2006: Security – Sustainability – Competitiveness

Commission’s Communication “An Energy Policy for Europe” in January 2007 accompanied by a Strategic Energy Review and, among a range of new European energy policy initiatives,a Communication on “Sustainable Power Generation from Fossil fuels: Aiming for near-zero emissions from coal after 2020

Conclusions of the European Council 8/9 March 2007 with officialCreation of an “Energy Policy for Europe (EPE)” and the Energy Policy Action Plan (2007-2009)

Consultation


Call of European Spring Council 2007: Develop a sustainable integrated European climate and energy policy!

„Global warming, together with the need to ensure security of supply and enhance business competitiveness, make it more vital and pressing

for the EU to put in place an integrated energy policy …“


The new Energy Policy for Europe (EPE) is largely preoccupied

with “environmental” issues …

Limiting the global average temperature increase to not more than 2° C above pre-industrial levels

Firm commitment of the EU to achieve a 20 % reduction of greenhouse gas emissions by 2020. Provided that other developed countries commit themselves to comparable reductions the European Council has even endorsed an EU objective of a 30 % reduction by 2020 (with a view to collectively reducing GHG emissions by 60 % to 80 % in 2050)

Increase energy efficiency in the EU so as to achieve the objective of saving 20 % of the energy consumption (compared to the projections for 2020)

Binding target of a 20 % share of renewable energies in overall EU energy consumption by 2020


… but is also „aware of the huge possible global benefits of asustainable use of fossil fuels“. Therefore the Council :

underlines the importance of substantial improvements in generation efficiency and clean fossil fuel technologies,

urges Member States and the Commission to work towards strengthening R & D and developing the necessary technical, economic and regulatory framework to bring environmentally safe carbon capture and sequestration (CCS) to deployment with new fossil–fuel power plants, if possible by 2020;

welcomes the Commission intention to establish a mechanism to stimulate the construction and operation by 2015 of up to 12 demonstration plants of sustainable fossil fuel technologies in commercial power generation.

welcomes the Commission‘s intention to table a European Strategic Energy Technology Plan during 2007 … to acceleratethe competitiveness of sustainable energies …and low carbon technologies.


Coal responds to the EPE (Energy Policy for Europe) priorities

Tackling climate change and enhancement of energy efficiency:

Continuous modernisation and major efficiency improvements help reducing emissions significantly in the short and medium term

Carbon sequestration in coal-fired power plants and geological storage to be developed for the next decades

Strategic European Energy Technology Plan:

The coal industry has backed the ZEP, and Euracoal welcomes planned coal-based pilot and demonstration plants with CCS

Towards a coherent external energy policy:

Clean Fossil Fuel- and CCS-Projects will strengthen international partnership and cooperation


Coal responds to the EPE priorities (2)

Security of supply and solidarity between Member States:

Coal provides a unique contribution to security of supply: Large indigenous reserves. And a lot of Member States have a coal and/or lignite production of their own

Imported coal comes from more diverse sources than oil and gas and it can be safely transported and stored

For Europe an « effective diversification of energy sources » (European Council) is impossible without coal

Completing the internal European energy markets for growth and jobs:

Coal already has a fully functioning internal market

Reasonable and stable prices of solid fuels help competitiveness in Europe and there are big economic advantages of coal-based power generation also in future (see Prognos-Study for Euracoal, which will be published in the next weeks!)


The view of the coal industry: Clean coal comes in three stages

Clean coal IRetrofit and new-build in line with state of the art, further significant increase in efficiency

and reduction of SO2, NOx and dust

Clean coal IIResearch and development forincrease in efficiency to > 50 %

Clean coal IIICO2 capture and storage

Pilot and demonstration plants

Timely investment in ultra-modern technology


ZEP has already proposed 10-12 large scale CCS projects

Several coal-based CCS projects are already planned, for example:

– RWE (UK and Germany), E.ON (UK), Powerfuel (UK)

– Vattenfall (Germany), General Electric (Poland) etc

Necessary to provide urgent short and long term commercial incentives for these to go ahead:

– Inclusion in EU-ETS

– Clarification of state aid issues

– Early-mover funding mechanisms for pilot projects, establish robust R & D-Funding under FP7 and national programmes

– Long-term sustainable mechanisms for full deployment


A lot of political action is needed to make CCS a realityEU - Elements of a Directive on CCS

– Management of the environmental risks associated with CCS

– Effective and reliable permitting of storage sites

– Liability for CCS activities

International maritime and national legal frameworks

Public Acceptance

– Less than 10 % heard of CCS – before explanation only 13 % were positive, after explanation 55 % agreed; meanwhile there is moremedia information

– Public consultation needs to take into account the judgement andknow how of industry and science (as the IPCC Task Force), not only the objections of “green” campaigners

– An early information campaign is necessary to get sufficient public support for the large scale implementation of CCS

Competitiveness of CCS


Continuous modernization and increased efficiency is a pre-requisite to CCS …

31 - 36 %

40 - 45 %

η

Feasible today

Possible tomorrow

∆η~+30%

1950 - 1970 1970 - 1990 1990 - 2010 2010 - 2020

∆η~+30%

25 - 31 %

50, 150, 300 300, 600 up to 1.100 Unit size in MW

The right approach: continuous power plant modernization/renewal

Conceivable dayafter tomorrow

after 2020

A zero-CO2 power plant

20

25

30

35

40

45

5045 - >50 %


Coal industry‘s general energy policy requirements

Confirmation of coal as a sustainable, secure and competitive part of the EU energy mix in the years to come

Further political commitment to the vision/option of CCS including binding financial support for pilot and demonstration plants andadoption of an adequate legal framework for CO2 storage

Acknowledge the successes in enhancement of efficiency and limiting pollution of European coal power plants in the past andrecognise that increased plant efficiency and continuous modernisation have the potential to preserve resources and reduce CO2 in the short and medium terms

Acknowledge efficiency increase as a pre-requisite for CCS instead of devaluating it

The global problem climate change needs a global solution


source: BP, 2006

2005 : 29,1 billion t CO2

Japan

Rest of the world

India

22%

UK Germany

USA

Rest of EU-25

30%

10%4%

18%

6%5%2 % 3%

Russia

China

Energy related CO2-emissions in the world:A global problem, not only a European or a country-specific one

Prof. Dr. Franz-Josef

Wodopia(GVSt)

Thank you very much for your attention

Energy, Climate Change and

Clean Coal Conference –

University of Sheffield,

24th April 2007

The view of Euracoal – the European coal producers ... · Securing coal’s position in the...

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